Gensler outlines the conditions under which the SEC would approve a bitcoin ETF

SEC will consider applications to launch a ETF based on Chicago Mercantile Exchange futures and comply with the Investment Company Act of 1940, the Commission chief Gary Gensler заявил.

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\”I look forward to staff reviewing such applications\”, he said to attendees at a Financial Times-organized conference.

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The official said that such criteria were put forward in August.

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In recent months, applications to launch bitcoin ETFs based on these recommendations were filed by Valkyrie Investments, VanEck, Invesco, ProShares, Galaxy Digital and AdvisorShares.

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According to Eric Balchunas, a senior ETF analyst at Bloomberg, the aforementioned structure is unpopular among investors.

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For instance, the bitcoin futures-based mutual fund, launched two months ago, attracted only $15 million, while in Canada a physically backed ETF is 27 times larger.

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The Bitcoin futures mutual fund that launched 2mo ago only has $15m in aum, VERY LOW considering the pent up demand. Here’s a look at first 43 days of $BTCFX vs $BTCC (physical) in Canada (whose mkt is 27x smaller btw). Not sure if MF or futures is problem but poss bad sign.. pic.twitter.com/d3WwPxnpuG

— Eric Balchunas (@EricBalchunas) September 29, 2021

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Earlier, Balchunas and his colleague James Seiffert noted the shortcomings of the SEC’s preferred bitcoin ETF option.

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Bloomberg experts forecast in August that the Commission would approve a bitcoin ETF by the end of October, with the ProShares filing named as the frontrunner.

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